Sen. Josh Hawley is likely to support his party’s domestic policy megabill — the inaptly named One Big Beautiful Bill Act — but the Missouri Republican has made clear that he’s looking to make some changes. In fact, more so than most GOP senators, Hawley has focused on Medicaid’s provider tax and its potential impact on rural hospitals.
With this in mind, the senator told The New York Times this week that he’d spoken to Donald Trump about the Senate version of the reconciliation package and, according to Hawley, the president was surprised to learn about the policy that would likely lead to lower payments to rural hospitals.
This was no small revelation. Republicans have been working on this legislation for eight months. It’s been pending in the Senate for several weeks. Trump has been unsubtle in his efforts to lobby lawmakers in support of the far-right package.
But amid considerable discussion in policy circles about a key element of the bill, Trump apparently had no idea about this provision — which, given his background as a post-policy president with little interest in the substance of governing, isn’t surprising, though it was a timely reminder that Trump probably won’t be taking on an active role in ironing out policy details in the coming days and weeks.
That said, it’s not too late for the White House to get up to speed on the issue.
This gets quite wonky, but under the existing system, Medicaid is a federal-state partnership, with states covering upfront care costs, and the federal government then reimbursing them for at least 50%. Nearly every state — in fact, every state except Alaska — has been able to collect additional matching funds through Medicaid provider taxes, which are imposed on providers, including hospitals. As NBC News reported, “When states use provider funds to boost their Medicaid spending, the federal government gives them more money because it’s required to match it.”








